have an account?【sign in】stock vesting schedule excel:A Comprehensive Guide to Developing a Vesting Schedule in Excel
todorovaauthorA Comprehensive Guide to Developing a Stock Vesting Schedule in Excel
A stock vesting schedule is a key aspect of any employee compensation plan, particularly for startups and early-stage companies. It sets forth the timing and amounts of stock options or shares that an employee is entitled to receive over the course of their employment. Creating a stock vesting schedule in Excel can be a time-effective and accurate approach, especially for small and medium-sized companies. This article provides a step-by-step guide on how to develop a vesting schedule in Excel, with examples and explanations to help you understand the intricacies of the process.
1. Set up the Excel workbook
To begin creating a stock vesting schedule in Excel, first open a new workbook and set up the necessary worksheet layers. Include the following worksheets:
- Main Worksheet: This is where you will input all relevant data, such as employee information, option grant dates, and vesting periods.
- Schedule Worksheet: This worksheet will contain the vesting schedule itself. You can create a separate worksheet or use the same one as the Main Worksheet, depending on your preference and the level of detail you require.
2. Input employee information
On the Main Worksheet, input all employee information, including their name, job title, option grant date, and vesting periods. You can also include other relevant data, such as the option grant's exercise price or share count.
3. Set up vesting periods
Vesting periods refer to the period of time during which an employee is required to remain employed by the company in order to fully vest in their stock options. Set up the vesting periods on the Schedule Worksheet or Main Worksheet, depending on your preference. You can use fixed periods, such as 1-3 years, or use more complex vesting curves, such as linear, linear with a 40% early vesting trigger, or an inverted vesting curve.
4. Calculate vesting shares
On the Schedule Worksheet or Main Worksheet, create a formula that calculates the number of shares an employee will vest on each vesting date. This can be done by dividing the total number of shares granted by the remaining vesting periods. You can also include an offset for shares that may have vested prior to the calendar quarter or year being considered.
5. Display the vesting schedule
Once you have calculated the number of shares an employee will vest on each vesting date, display this information on the Schedule Worksheet or Main Worksheet. You can use tables, columns, or rows to organize the data, and add in visual elements such as bars or charts to illustrate the vesting schedule's progression.
6. Review and refine
Finally, review the vesting schedule in Excel to ensure accuracy and completeness. Make any necessary adjustments and updates to the data and formulas, and ensure the schedule accurately reflects the company's stock vesting policy.
Creating a stock vesting schedule in Excel is a straightforward and efficient approach for small and medium-sized companies. By following this comprehensive guide, you can develop a clear and accurate vesting schedule that serves as a valuable tool for managing employee stock options and fostering long-term employee engagement.